If the Franchise Agreement for a Crave Cookies location is terminated, what is the franchisee's obligation regarding the lease?

According to Crave Cookies' 2025 Franchise Disclosure Document, if the Franchise Agreement between Crave Cookies and the franchisee is terminated during the term of the lease, the franchisee is obligated to assign the lease to Crave Cookies if Crave Cookies requests it in writing. The landlord consents to this assignment. This provision is part of a rider that is incorporated into the lease agreement, and in the event of any conflict between the lease and the rider, the terms of the rider will take precedence.

This requirement ensures that Crave Cookies has control over the location even if the franchisee's agreement is terminated. This allows Crave Cookies to continue operating a franchise at that location, either by assigning the lease to another franchisee or operating it themselves.

However, the franchisee's assignment or subletting of the lease to Crave Cookies does not relieve the franchisee or any guarantor of liability under the lease. This means that even after the lease is assigned to Crave Cookies, the original franchisee remains responsible for the financial obligations of the lease unless otherwise agreed with the landlord.

Additionally, upon the expiration or termination of the Franchise Agreement or the Lease, Crave Cookies or its designee has the right to enter the leased premises after providing reasonable notice to the landlord. This allows Crave Cookies to remove any signs and other materials bearing the Crave Cookies brand name, trademarks, and commercial symbols. Crave Cookies is liable for any damage caused during the removal process, and these rights expire 30 days after Crave Cookies receives notice from the landlord that the franchisee's right of possession has been terminated.